A Citizen’s Campaign to Reclaim Control of Public Money
POLICY PAPER • AUGUST 2026
Strengthening Public Finance, Supporting Community Banking, and Investing in New Jersey’s Future“Public dollars should produce public value.”A policy framework for legislators, public officials, policy makers,community leaders, financial institutions, and the people of New Jersey
Executive Summary
New Jersey manages substantial public resources while facing continuing demands for investment in infrastructure, affordable and workforce housing, small businesses, education, municipal finance, climate resilience, water systems, transportation, and other public priorities. The State has already undertaken a multi-year examination of public banking through the Public Bank Implementation Board (PBIB), created by Executive Order No. 91 in 2019. The Board’s final recommendations were unanimously approved in January 2024.1
The PBIB’s research identified more than a dozen unmet financing gaps in under-resourced New Jersey communities and reviewed more than 30 public-banking models. It recommended a mission-driven institution designed to expand access to patient, below-market capital and to work through and with existing financial institutions rather than compete with them.
A New Jersey Public Bank should therefore be understood not as a replacement for private banking, but as an additional financial tool: a professionally managed, publicly purposed institution that can partner with community banks, credit unions, Community Development Financial Institutions (CDFIs), public authorities, and other lenders to increase the productive use of public capital.
New Jersey has already taken an important intermediate step. The Social Impact Investment Fund (SIIF), created by law in 2023 with approximately $20 million in State seed capital, is designed to blend public and private investment and deploy below-market financing in affordable housing, distressed-community water infrastructure, and early-childhood education facilities. In January 2026, the Department of the Treasury selected Nonprofit Finance Fund to manage the SIIF and described the initiative as a public-bank pilot that moves New Jersey closer to a public-banking model.3
The case for continued development rests on six principles: stewardship, partnership, fiscal responsibility, independence and accountability, economic opportunity, and resilience. The goal should not be to create the largest possible public bank. It should be to create the most useful, prudent, transparent, and trusted public financial institution possible. Read full document here.
Why a Public Bank?
A public bank can significantly reduce the cost of public projects in a number of ways:
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By providing lower cost credit than is typically available in the capital bond markets and by saving on the high cost of underwriting and insuring these financed funds
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By retaining the interest paid on borrowed funds in our own bank, thereby building further lending strength of the bank to make more cost-effective loans for public needs
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By lending to ourselves and into our community economies, a public bank creates a virtuous cycle of increasing our equity, saving money and protecting our resources from the vagaries and risks of Wall Street speculation and practices
A public bank working in partnership with community banks ensures that local money works locally and stays local, thereby supporting development and businesses that strengthen our neighborhoods and increase our common wealth.
How would a public bank be structured? A public bank would receive deposits of government revenues such as taxes and fees. It would be a separate agency of government, separated from political and special interests by design of its governance, with representatives of the public working with banking professionals to execute its mission of public service. Its activities would be transparent and accountable to the public. When providing credit for community needs or objectives, it would work as often as possible with community-based banks and credit unions, thereby supporting these important community partners who know their neighbors and customers – doing so helps local banks retain customers and revenues. The public bank will not compete with local financial institutions because the focus of its lending will be in categories not served by local banks.
We work with the national Public Banking Institute, and seek to work with other community banking organizations, as well as other community-minded people and groups in New Jersey. Public banking is an idea whose time has come and one from which we all stand to gain. We welcome your participation in making it happen.
How can you help? Currently, we’re recruiting individuals with strong backgrounds in banking, public administration, economics or community development to serve on an advisory committee for our group. We also welcome invitations to speak to community, civic, and business groups. To get in touch with us, fill out our contact form or phone 609-921-2149. We also welcome questions about our work and public banking in general—explore our site and check back as we post more information, or send us your questions and ideas.